Ind. Code § 4-13-2-18 – Appropriations; administration of allotment system; unauthorized payment by officers; budget director authorization of employee positions

(a) For the purpose of the administration of the allotment system provided by this section, each fiscal year shall be divided into four (4) quarterly allotment periods, beginning respectively on the first day of July, October, January, and April. In any case where the quarterly allotment period is impracticable, the budget director may prescribe a different period suited to the circumstances but not extending beyond the end of any fiscal year.
(b) Except as otherwise expressly provided in this section, the provisions of this chapter relating to the allotment system and to the encumbering of funds shall apply to appropriations and funds of all kinds, including standing or annual appropriations and dedicated funds, from which expenditures are to be made from time to time by or under the authority of any state agency. The provisions relating to the allotment system shall not apply to money made available for the purpose of conducting a post-audit of financial transactions of any state agency. Likewise, appropriations for construction or for the acquisition of real estate for public purposes may be exempted from the allotment system by the budget director. The budget director shall prescribe regulations as will ensure the proper application and encumbering of those funds.
(c) No appropriation to any state agency shall become available for expenditure until:
1. (1) the state agency shall have submitted to the budget agency a request for allotment, the request for allotment to consist of an estimate of the amount required for each activity and each purpose for which money is to be expended during the applicable allotment period; and
2. (2) the estimate contained in the request for allotment shall have been approved, increased, or decreased by the budget director and funds allotted as provided.
  The form of a request for allotment, including a request by hand, mail, facsimile transmission, or other electronic transmission, shall be prescribed by the budget agency with the approval of the state comptroller and shall be submitted to them at least twenty-five (25) days prior to the beginning of the allotment period.
(d) Subject to subsection (m), each request for allotment shall be reviewed by the budget agency and respective amounts shall be allotted for expenditure if:
1. (1) the estimate is within the terms of the appropriation as to amount and purpose, having due regard for the probable future needs of the state agency for the remainder of the fiscal year or other term for which the appropriation was made; and
2. (2) the agency contemplates expenditure of the allotment during the period.
  Otherwise the budget agency shall modify the estimate to conform with the terms of the appropriation and the prospective needs of the state agency, and shall reduce the amount to be allotted accordingly. The budget agency shall act promptly upon all requests for allotment and shall notify every state agency of its allotments at least five (5) days before the beginning of each allotment period. The total amount allotted to any agency for the fiscal year or other term for which the appropriation was made shall not exceed the amount appropriated for the year or term.
(e) The budget director shall also have authority at any time to modify or amend any allotment previously made by the budget director.
(f) In case the budget director shall discover at any time that:
1. (1) the probable receipts from taxes or other sources for any fund will be less than were anticipated; and
2. (2) as a consequence the amount available for the remainder of the term of the appropriation or for any allotment period will be less than the amount estimated or allotted;
  the budget director shall, with the approval of the governor, and after notice to the state agency or agencies concerned, reduce the amount or amounts allotted or to be allotted to prevent a deficit.
(g) The budget agency shall promptly transmit records of all allotments and modifications to the state comptroller.
(h) The state comptroller shall maintain as a part of the central accounting system for the state, as provided, records showing at all times, by funds, accounts, and other pertinent classifications, the amounts appropriated, the estimated revenues, the actual revenues or receipts; the amounts allotted and available for expenditure, the total expenditures, the unliquidated obligations, actual balances on hand, and the unencumbered balances of the allotments for each state agency.
(i) No payment shall be made from any fund, allotment, or appropriation unless the state comptroller shall first certify that there is a sufficient unencumbered balance in the fund, allotment, or appropriation, after taking into consideration all previous expenditures to meet the same. In the case of an obligation to be paid from federal funds, a notice of a federal grant award shall be considered an appropriation against which obligations may be incurred, funds may be allotted, and encumbrances may be made.
(j) Every expenditure or obligation authorized or incurred in violation of the provisions of this chapter shall be void. Every payment made in violation of the provisions of this chapter shall be illegal, and every official authorizing or making a void payment, or taking part in a void payment, and every person receiving a void payment, or any part of a void payment, shall be jointly and severally liable to the state for the full amount paid or received. If any appointive officer or employee of the state shall knowingly incur any obligation or shall authorize or make any expenditure in violation of the provisions of this chapter, or take any part, it shall be ground for removal of the appointive officer or employee of the state by the officer appointing the appointive officer or employee of the state. If the appointing officer is a person other than the governor and fails to remove the officer or employee, the governor may exercise the power of removal after giving notice of the charges and opportunity for hearing to the accused officer or employee and to the officer appointing the accused officer or employee.
(k) The budget director shall be responsible for the authorization of employee positions. Such authorizations shall be based on the following:
1. (1) A requirement that permanent full-time positions which have been vacant for ninety (90) days or more be reviewed and reauthorized prior to being filled. If requested by the budget director, the state personnel director shall review such vacant positions to determine the proper classification for the position.
2. (2) Other relevant criteria as determined by the budget director.
(l) The budget director shall provide a report to the governor not later than January 1, April 1, July 1, and October 1 of each year that lists the permanent full-time positions that were subject to the budget director's review under subsection (k)(1) during the preceding three (3) months.
(m) If the budget director determines at any time that a state agency can perform the agency's statutory obligations with less than the amount appropriated, the budget director shall, with the approval of the governor, and after notice to the state agency or agencies concerned, reduce the amount or amounts allotted or to be allotted. The budget agency shall maintain a list of each appropriation from which the amount or amounts allotted or to be allotted are reduced and publish the list on the budget agency's website.
Formerly: Acts 1947, c.279, s.20; Acts 1953, c.135, s.1. As amended by Acts 1981, P.L.32, SEC.13; P.L.28-1983, SEC.10; P.L.6-1996, SEC.4; P.L.215-2016, SEC.81; P.L.9-2024, SEC.89; P.L.182-2025, SEC.4; P.L.213-2025, SEC.51; P.L.23-2026, SEC.10.